OTTAWA - The federal minister overseeing Canada Post defended recent changes to the Crown corporation's mandate during a parliamentary committee meeting on Thursday. Procurement Minister Joël Lightbound stated that the adjustments are not intended to diminish services for rural and remote communities, where post offices are vital.

On September 25, Lightbound announced significant modifications to Canada Post's operations as part of an effort to reduce costs and stabilize the struggling business. These changes include lifting a long-standing moratorium on closing rural post offices, raising concerns about the future of mail delivery in areas often underserved by private couriers.

Lightbound emphasized that he has made it clear to Canada Post that it must uphold delivery standards for rural, remote, and Indigenous communities as it implements these changes. He noted that some post offices previously covered by the moratorium are no longer classified as rural and that alternative service points exist in those communities.

The minister explained that the government is allowing Canada Post to expand community mailbox services to approximately four million additional addresses and adjust delivery standards. He stated that these measures are part of a strategy to "lift the constraints" on Canada Post as it seeks to restructure its business model. Lightbound has given Canada Post management 45 days to present a plan to address its financial challenges.

The Crown corporation has welcomed the government's transformation plan, but the Canadian Union of Postal Workers has expressed strong opposition. Following the announcement, union members resumed picketing and are currently engaged in a rotating strike as collective bargaining remains unresolved.

Canada Post has reported significant operational losses, claiming it is losing about $10 million daily. Since 2018, the corporation has accumulated $5 billion in losses and required a $1 billion federal loan earlier this year to remain operational. Lightbound estimated that the new measures could save Canada Post $500 million annually.

He pointed to a sharp decline in letter mail over the years, stating that Canada Post has become too large for its current volume of deliveries. "Without any changes, we’d be in repeated bailouts," he said.

When asked about potential job losses resulting from these changes, Lightbound suggested that such inquiries should be directed to Canada Post. He acknowledged that the federal government is also reviewing its own programs to cut spending by 15 percent over three years, and he believes it is reasonable to expect Canada Post to conduct a similar review.

The postal workers' union has accused the government of undermining the collective bargaining process by implementing these changes without adequate consultation. Lightbound responded to questions about the timing of the government's intervention, stating that the situation has evolved and that action should have been taken sooner.

He noted that the Industrial Inquiry Commission, led by William Kaplan, had previously examined the best path forward for Canada Post, and the government is now acting on those recommendations. Lightbound concluded, "The transformation has to begin," emphasizing the urgency of the situation.

The changes to Canada Post's operations are expected to impact many Canadians, particularly those who rely on door-to-door delivery. Lightbound assured that residents with mobility issues and seniors can apply for personalized delivery services. He reiterated that the protection of rural and remote mail services remains a priority, despite the lifting of the moratorium on closing certain post offices.

The Canadian Union of Postal Workers plans to address the committee next week as part of its ongoing efforts to challenge the government's reforms. Lightbound expressed hope for a renewed relationship between labor and management, aiming for a viable future for Canada Post amid its financial struggles.